Posts Tagged ‘destroy’

According to a study by the Economic Policy Institute (EPI), Mitt Romney’s budget plan would destroy jobs.

His plan includes cutting taxes on the rich. Those kind of reductions destroy jobs because CEO’s seek to get investors with the newly available cash to purchase their stocks and bonds. That means a bidding war usually begins among CEOs. The best way to attract the cash is to raise profits, dividends and share prices. And the best way to do that is to cut jobs, wages, salaries and other employee compensation, and that typically means sending jobs overseas. The EPI study does not count this reality in ascertaining the certainty that the Romney plan will kill jobs in this country.

Romney’s plan is simple enough. Redistribute income from the 99 to the 1 percent by cutting taxes on the rich, and paying for the reductions by killing government jobs. People will be fired so the rich can have more tax cuts. Great Plan! Of course, those jobs have a multiplier effect throughout the economy; they support other jobs in the private sector, and so the EPI study understates the jobs losses under “Dumbed-Down Wall Street Mitt the Twit Romney.”

The gist of the study is thus:

“* The budget plans put forward by Mitt Romney would lead to small job gains of 87,000 in 2013 and a loss of 641,000 jobs in 2014, relative to current policy, if his proposed tax cuts were fully deficit-financed.
* If some of Romney’s proposed individual income tax cuts were revenue-neutral (he has said that they would be, but has not specified what “base-broadening” adjustments he would make to the tax code to accomplish that), his plans would instead lead to employment losses of 608,000 in 2013 and roughly 1.3 million in 2014.
* The weaker job growth and outright job losses under the Romney plan are driven by his proposal to cap government spending at 20 percent of gross domestic product (GDP), a move that implies very large cuts to overall spending.”

Who would promote job growth most in the near term?–Economic Policy Institute

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Mitt Romney: How this guy got rich by destroying jobs

Almost a quarter of a century has passed since the release of the movie “Wall Street,” and the film seems more relevant than ever. The self-righteous screeds of financial tycoons denouncing President Obama all read like variations on Gordon Gekko’s famous “greed is good” speech, while the complaints of Occupy Wall Street sound just like what Gekko says in private: “I create nothing. I own,” he declares at one point; at another, he asks his protégé, “Now you’re not naïve enough to think we’re living in a democracy, are you, buddy?”

click here for the rest of the story

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